Victoria's Secret & Co. (NYSE:VSXY) Trading Up 4.4% - Here's Why

Key Points

• Victoria’s Secret shares rose 4.4% to $91.19, reaching an intraday high of $91.69, although trading volume was 93% below the average session level.
• Analysts have raised their price targets, including Wells Fargo to $90 and UBS to $95. The stock carries a “Moderate Buy” consensus rating with an average target of $89.70.
• The company exceeded quarterly expectations, reporting $0.60 EPS versus $0.29 expected and revenue of $1.56 billion versus $1.52 billion expected. However, insiders sold approximately $212.4 million of shares over the past 90 days.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report)'s share price was up 4.4% on Wednesday . The stock traded as high as $91.69 and last traded at $91.19. Approximately 155,677 shares changed hands during trading, a decline of 93% from the average session volume of 2,136,758 shares. The stock had previously closed at $87.36.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Wells Fargo & Company increased their price objective on Victoria's Secret & Co. from $57.00 to $90.00 and gave the company an "overweight" rating in a report on Wednesday, June 3rd. Weiss Ratings raised shares of Victoria's Secret & Co. from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, June 24th. The Goldman Sachs Group lifted their target price on shares of Victoria's Secret & Co. from $56.00 to $84.00 and gave the company a "neutral" rating in a report on Wednesday, June 3rd. UBS Group boosted their price objective on shares of Victoria's Secret & Co. from $90.00 to $95.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 18th. Finally, TD Cowen increased their target price on shares of Victoria's Secret & Co. from $75.00 to $80.00 and gave the company a "hold" rating in a research report on Tuesday, August 18th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $89.70.

Victoria's Secret & Co. Stock Up 4.7%

The company has a debt-to-equity ratio of 1.17, a current ratio of 1.26 and a quick ratio of 0.41. The firm's 50-day simple moving average is $85.06 and its two-hundred day simple moving average is $65.40. The company has a market capitalization of $7.26 billion, a price-to-earnings ratio of 49.17, a price-to-earnings-growth ratio of 0.60 and a beta of 2.06.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) last issued its earnings results on Tuesday, June 2nd. The company reported $0.60 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.29 by $0.31. The company had revenue of $1.56 billion during the quarter, compared to analysts' expectations of $1.52 billion. Victoria's Secret & Co. had a net margin of 3.11% and a return on equity of 38.03%. During the same period last year, the company posted $0.09 earnings per share. Sell-side analysts predict that Victoria's Secret & Co. will post 4.7 EPS for the current fiscal year.

Insider Transactions at Victoria's Secret & Co.

In related news, major shareholder International Pte Ltd Bbrc sold 1,107,672 shares of Victoria's Secret & Co. stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $80.11, for a total transaction of $88,735,603.92. Following the completion of the transaction, the insider directly owned 9,202,959 shares of the company's stock, valued at approximately $737,249,045.49. The trade was a 10.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders sold 2,500,000 shares of company stock worth $212,353,716 over the last ninety days. Insiders own 0.52% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Geode Capital Management LLC boosted its stake in shares of Victoria's Secret & Co. by 2.8% during the 4th quarter. Geode Capital Management LLC now owns 1,760,139 shares of the company's stock worth $95,365,000 after purchasing an additional 47,462 shares during the last quarter. Sequoia Financial Advisors LLC raised its position in shares of Victoria's Secret & Co. by 212.4% in the first quarter. Sequoia Financial Advisors LLC now owns 18,754 shares of the company's stock valued at $869,000 after buying an additional 12,750 shares during the last quarter. Landscape Capital Management L.L.C. lifted its stake in shares of Victoria's Secret & Co. by 47.5% during the fourth quarter. Landscape Capital Management L.L.C. now owns 177,423 shares of the company's stock valued at $9,611,000 after buying an additional 57,133 shares during the period. California State Teachers Retirement System boosted its position in Victoria's Secret & Co. by 23.5% during the first quarter. California State Teachers Retirement System now owns 84,333 shares of the company's stock worth $3,910,000 after acquiring an additional 16,044 shares during the last quarter. Finally, Apollon Wealth Management LLC purchased a new stake in Victoria's Secret & Co. in the 1st quarter worth approximately $940,000. Hedge funds and other institutional investors own 90.29% of the company's stock.

About Victoria's Secret & Co.

Victoria’s Secret & Co is a leading designer, manufacturer and marketer of intimate apparel, beauty products and accessories for women. The company operates a portfolio of brands that includes Victoria’s Secret, renowned for its lingerie, bras and sleepwear; PINK, a line targeting younger consumers with activewear and lifestyle products; and Victoria’s Secret Beauty, offering fragrances, cosmetics and personal care items. Products are sold through retail stores as well as direct-to-consumer channels, including e-commerce platforms and mobile applications.

The origins of Victoria’s Secret date back to 1977, when founders Roy and Gaye Raymond opened the first store in San Francisco.

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